Regulators Double Down on Crypto Regulation After Clarity Act Defeat
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are pushing forward with their plans to regulate cryptocurrencies, despite the recent defeat of the Clarity Act in the Senate.
CFTC Chair Michael Selig stated that his agency is 'ready to ship' its crypto rules, while SEC Chair Paul Atkins pledged action 'with or without legislation.' This comes after the Senate failed to advance the Clarity Act, which would have established a federal framework for crypto markets and clarified the responsibilities of the CFTC and SEC.
The failure of the Clarity Act, which fell short of the 60 votes needed by a margin of just one vote, has not deterred the regulators from proceeding with their plans. Selig outlined his agency's plans in August, directing staff to explore rules covering crypto exchanges and trading with borrowed funds.
The SEC had also signaled its intentions to act if the Clarity Act failed to advance, releasing proposed rules for the industry under a framework called 'Regulation Crypto Assets' in mid-August. Atkins emphasized that the SEC is 'ready, willing, and able' to write crypto rules if Congress does not take action.